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FCC Form 499, July 1999
Approved by OMB 3060-0855
Estimated Average Burden Hours Per Response: 8 Hours
Telecommunications Reporting Worksheet, FCC Form 499-A
Instructions for Completing the
Worksheet for Filing Contributions
to Telecommunications Relay Service,
Universal Service, Number Administration,
and Local Number Portability Support Mechanisms
* * * * *
NOTICE TO INDIVIDUALS: Sections 54.703, 54.711, and 54.713 of the Federal Communications
Commission's rules require all telecommunications carriers providing interstate telecommunications services,
providers of interstate telecommunications that offer interstate telecommunications for a fee on a non-common
carrier basis, and payphone providers that are aggregators to contribute to universal service and file this
Telecommunications Reporting Worksheet (FCC Form 499) twice a year. 47 C.F.R. 54.703, 54.711, 54.713.
Section 52.17 provides that all telecommunications carriers in the United States shall contribute on a
competitively neutral basis to meet the costs of establishing numbering administration, and directs that
contributions shall be calculated and filed in accordance with this worksheet. 47 C.F.R. 52.17. Section 52.32
provides that the local number portability administrators shall recover the shared costs of long-term number
portability from all telecommunications carriers. 47 C.F.R. 52.32. Section 64.604 requires that every carrier
providing interstate telecommunications services shall contribute to the Telecommunications Relay Services
(TRS) Fund on the basis of its relative share of interstate end-user telecommunications revenues, with the
calculation based on information provided in this worksheet. 47 C.F.R 64.604(c)(iii)(4).
This collection of information stems from the Commission's authority under Sections 225, 251, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. 225, 251, and 254. The data in the Worksheet will be
used to calculate contributions to the universal service support mechanisms, the telecommunications relay
services support mechanism, the cost recovery mechanism for numbering administration, and the cost recovery
mechanism for shared costs of long-term number portability. Selected information provided in the Worksheet
will be made available to the public in a manner consistent with the Commission's rules.
We have estimated that each response to this collection of information will take, on average, 8 hours. Our
estimate includes the time to read the instructions, look through existing records, gather and maintain the
required data, and actually complete and review the form or response. If you have any comments on this
estimate, or how we can improve the collection and reduce the burden it causes you, please write the Federal
Communications Commission, AMD-PERM, Washington, D.C. 20554, Paperwork Reduction Project (3060-
0855). We also will accept your comments via the Internet if you send them to jboley@fcc.gov. Please DO
NOT SEND COMPLETED WORKSHEETS TO THIS ADDRESS.
Remember -- You are not required to respond to a collection of information sponsored by the Federal
government, and the government may not conduct or sponsor this collection, unless it displays a currently valid
Office of Management and Budget (OMB) control number. This collection has been assigned an OMB control
number of 3060-0855.
The Commission is authorized under the Communications Act of 1934, as amended, to collect the personal
information we request in this form. We will use the information that you provide to determine contribution
amounts. If we believe there may be a violation or potential violation of a statute or a Commission regulation,
rule, or order, your Worksheet may be referred to the Federal, state, or local agency responsible for investigating,
prosecuting, enforcing, or implementing the statute, rule, regulation, or order. In certain cases, the information
in your Worksheet may be disclosed to the Department of Justice, court, or other adjudicative body when (a) the
Commission; or (b) any employee of the Commission; or (c) the United States government, is a party to a
proceeding before the body or has an interest in the proceeding.
If you owe a past due debt to the federal government, the taxpayer identification number (such as your social
security number) and other information you provide also may be disclosed to the Department of the Treasury
Financial Management Service, other federal agencies, and/or your employer to offset your salary, IRS tax refund,
or other payments to collect that debt. The Commission also may provide this information to those agencies
through the matching of computer records where authorized.
With the exception of your social security number, if you do not provide the information we request on the
Worksheet, the Commission may consider you in violation of sections 1.47, 52.17, 52.32, 54.713, and 64.604 of
the Commission's rules. 47 C.F.R. 1.47, 52.17, 52.32, 54.713, and 64.604.
The foregoing Notice is required by the Privacy Act of 1974, P.L. 93-579, December 31, 1974, 5 U.S.C.
552(a)(e)(3), and the Paperwork Reduction Act of 1995, P.L. No. 104-13, 44 U.S.C. 3501, et seq.
* * * * *
Table of Contents
I. Introduction 3
II. Filing Requirements and General Instructions 4
A. Who Must File 4
1. Exception for de minimis (non-common carrier)
telecommunications service providers 5
2. Exception for government, broadcasters, schools and libraries6
3. Exception for systems integrator and self providers7
B. Filing by Legal Entity 7
C. When and Where to File 8
D. Rounding of Numbers and Negative Numbers 9
E. Obligation to file revisions 9
F. Compliance 10
III. Specific Instructions 10
A. Block 1: Contributor Identification Information 10
B. Block 2: Contact Information 13
C. Block 3: Contributor Revenue Information 14
1 Separating Revenue from Resellers from Revenue from
All Other Sources (carrier's carrier vs end user)14
2. Column (a) - total revenue 15
3. Columns (b) and (c) - percent interstate & international15
4. Explanation of revenue categories 17
Fixed local service revenue categories 17
Mobile service 19
Toll carrier service revenue categories 19
Other revenues categories 20
G. Block 4: Certification 21
IV. Calculation of Contributions 23
A. Contribution Requirements 23
B. Contribution Bases 25
V. Reminders 26
Figure 1: Table to determine if a contributor meets the
de minimis standard for purposes of universal service 6
Figure 2: Filing schedule 8
Figure 3: Which telecommunications service providers must contribute
for which purposes 24
Figure 4: Contribution bases 25
I. Introduction
As required under the Communications Act of 1934, as amended, the Commission has established, in a series
of separate proceedings, procedures to finance interstate telecommunications relay services (TRS), universal
service support mechanisms, administration of the North American Numbering Plan (NANPA), and shared costs
of local number portability (LNPA). To accomplish these Congressionally directed objectives, contributions are
collected from all telecommunications carriers providing interstate telecommunications and certain other
providers of telecommunications services. On ____, 1999, the Commission amended its rules so that
contributors to these mechanisms need only file one Telecommunications Reporting Worksheet for the purpose
of determining their contribution(s). This Worksheet sets forth the information that the contributor must
submit, so that the administrators of these mechanisms may calculate and assess contributions.
While some entities that file the Telecommunications Reporting Worksheet may not need to contribute to each
of the support and cost recovery mechanisms, in general, all telecommunications carriers and certain additional
telecommunications service providers must complete and file this worksheet. These instructions contain an
explanation of which carriers must contribute to particular mechanisms (see Section IV.A.), but filers should
consult the specific rules that govern contributions for each of the mechanisms. In general, contributions are
calculated based on contributors' end-user telecommunications revenue information, as filed in this worksheet.
By filing this worksheet, carriers may also satisfy their obligations under section 413 of the Act to designate an
agent in the District of Columbia for service of process.
II. Filing Requirements and General Instructions
A. Who must file
All providers of telecommunications services within the United States, with very limited exceptions, must file
an FCC Form 499-A Telecommunications Reporting Worksheet. For this purpose, the United States is defined
as the contiguous United States, Alaska, Hawaii, American Samoa, Baker Island, Guam, Howland Island, Jarvis
Island, Johnston Atoll, Kingman Reef, Midway Island, Navassa Island, the Northern Mariana Islands, Palmyra,
Puerto Rico, the U.S. Virgin Islands, and Wake Island.
For purposes of determining whether an entity provides interstate telecommunications, please note that the term
"telecommunications" means the transmission, between or among points specified by the user, of information
of the user's choosing, without change in the form or content of the information as sent and received. For the
purpose of filing, the term "interstate telecommunications" includes, but is not limited to, the following types
of services: wireless telephony including cellular and personal communications services (PCS); paging and
messaging services; dispatch services; mobile radio services; operator services; access to interexchange service;
special access; wide area telecommunications services (WATS); subscriber toll-free services; 900 services; message
telephone services (MTS); private line; telex; telegraph; video services; satellite services; and, resale services.
Note, for example, that all local exchange carriers provide access services and, therefore, provide interstate
telecommunications.
Note also that entities must file this worksheet, and are subject to the universal service contribution requirement,
if they offer interstate telecommunications services for a fee to the public even if only a narrow or limited class
of users could utilize the services. Included are entities that provide interstate telecommunications services to
entities other than themselves for a fee on a private, contractual basis. In addition, owners of pay telephones,
sometimes referred to as "pay telephone aggregators," must file this worksheet. Most telecommunications
carriers must file this worksheet even if they qualify for the de minimis exemption under the Commission's rules
for universal service.
The following three sections list types of (non-common carrier) telecommunications service providers that are
not required to file the Form 499-A. Note that some carriers and telecommunications service providers are
required to file this worksheet, but may not be required to contribute to all support mechanisms. For example,
some carriers may be exempt from contributing to the universal service support mechanisms (e.g., because they
are de minimis), but nevertheless must file because they are required to contribute to TRS, NANPA, or LNPA.
1. Exception for de minimis (non-common carrier) telecommunications service providers
Telecommunications service providers that offer telecommunications for a fee on a non-common carrier basis
need not file this worksheet if their contribution to the universal service support mechanisms would be de minimis
under the universal service rules. Such telecommunications service providers should complete the table contained
in Figure 1 to determine whether they meet the de minimis standard. To complete Figure 1, potential filers must
first complete block 3 of the Telecommunications Reporting Worksheet and enter the amounts from Line (232)
in Figure 1. Telecommunications service providers whose estimated universal service contribution would be less
than $10,000 are considered de minimis for universal service purposes and will not be required to make universal
service contributions.
Telecommunications service providers that do not file this worksheet because they are de minimis should retain
Figure 1 and documentation of their contribution base revenues for 3 calendar years after the date each
worksheet is due.
Figure 1: Table to determine if a contributor meets the de minimis standard
for purposes of universal service
Total intrastate,
interstate and
international
contribution base
(a)
Interstate and
international
contribution base
(b)
A
Amount from Block 3, Line (232)
B
0.25
0.25
C
Revenue stated on a quarterly basis
(Line A times Line B)
D
Estimated quarterly payment factor for the
purposes of meeting the de minimis threshold
*
.0073
.0391
E
Estimated quarterly contribution
(Line C times Line D)
F
Total quarterly contribution (Line E-1 plus Line E-2)
G
Annualizing factor
4
H
Estimated annual contribution for universal service support
(Line F times Line G)
* The semi-annual estimation factors (as well as contribution factors) can be found on the
Commission's web page (www.fcc.gov).
2. Exception for government, broadcasters, schools and libraries
Certain additional entities are explicitly exempted from contributing directly to the universal service support
mechanisms and need not file this worksheet. Government entities that purchase telecommunications services
in bulk on behalf of themselves, e.g., state networks for schools and libraries, are not required to file or contribute
directly to universal service. Public safety and local governmental entities licensed under Subpart B of Part 90
of the Commission's rules are not required to file or contribute directly to universal service. Similarly, if an entity
provides interstate telecommunications exclusively to public safety or government entities and does not offer
services to others, that entity is not required to file or contribute directly to universal service. In addition,
broadcasters, non-profit schools, non-profit libraries, non-profit colleges, non-profit universities, and non-profit
health care providers are not required to file the worksheet or contribute directly to universal service.
3. Exception for Systems Integrators and Self Providers
Systems integrators that derive less than five percent of their systems integration revenues from the resale of
telecommunications are not required to file or contribute directly to universal service. Systems integrators are
providers of integrated packages of services and products that may include the provision of computer capabilities,
interstate telecommunications services, remote data processing services, back-office data processing, management
of customer relationships with underlying carriers and vendors, provision of telecommunications and computer
equipment, equipment maintenance, help desk functions, and other services and products). Entities that provide
services only to themselves or to commonly owned affiliates need not file.
B. Filing by Legal Entity
Each legal entity that provides interstate telecommunications service for a fee, including each affiliate
or subsidiary of an entity, must complete and file separately a copy of the attached Telecommunications
Reporting Worksheet. Entities that have distinct articles of incorporation are separate legal entities. Entities
may not file "summary" worksheets for more than one contributor. Each affiliate or subsidiary should identify
their ultimate controlling parent or entity on Block 1 Line (106) -- Holding Company.
C. When and Where to File
Figure 2 provides the filing schedule and relevant addresses. If April 1 or September 1 is a holiday (as defined
in Section 1.4(e)(1) of the Commission's rules), worksheets are due the next business day.
Figure 2: Filing schedule
When to file
What to file
Where to file *
April 1, 2000
- Completed
Form 499-A
Telecommunications Reporting
Worksheet
Box: To be Announced
Fax: To be Announced
September 1, 1999
- Completed
Form 499-S
USAC -- Telecommunications Reporting
Worksheet, Form 499-S
100 South Jefferson Rd.
Whippany, NJ 07981
Carriers within one week of
a change in information
concerning their designated
agent
- Completed Page 1 of
Form 499-A
Chief, Formal Complaints and
Investigations Branch
Common Carrier Bureau
Rm 5-C823
445 12th Street, S.W.
Washington, D.C. 20554
* Do not send universal service, TRS, NANPA or LNPA contributions with this worksheet or to
any of these addresses. The appropriate administrators will calculate the amount of contribution
due and send a bill to the billing address identified in Line 117 of the Form 499-A or Line 113 of
the Form 499-S.
If you have questions about the worksheet or the instructions, you may contact:
Form 499 Telecommunications Reporting
Worksheet Information [To be Announced]
Common Carrier Bureau
Industry Analysis Division (202) 418-0940
TTY (Network Services Division) (202) 418-0484
If you have questions regarding contribution amounts, billing procedures or the support and cost recovery
mechanisms, you may contact:
Universal Service Administration (973) 560-4400
TRS Administration (973) 418-0948
NANPA Billing and Collection Agent (973) 884-8542
Local Number Portability Administrators (877) 245-5277
D. Rounding of Numbers and Negative Numbers
All information provided in the Worksheet, except the signature, should be neatly printed in ink or typed.
Dollar Amounts. Reported revenues in block 3, column (a) and column (c) that are greater than a thousand
dollars may be rounded to the nearest thousand dollars. Regardless of rounding, all dollar amounts must be
reported in whole dollars. For example, $2,271,881.93 could be reported as $2,271,882 or as $2,272,000, but
could not be reported as $2272 thousand, $2,270,000.00 or $2.272 million. Please enter $0 in any line for which
the contributor had no revenues for the year.
Percentages. Percentages reported in block 3, column (b) should be rounded to the nearest whole percent. For
example, if the exact amount of interstate revenues for a line is not known, but the filer estimates that the ratio
of interstate to total revenue was .425, then the figure 43% should be reported and used for calculating the
amount reported in column (c).
Carriers are directed to provide billed revenues without subtracting any expenses, allowances for uncollectibles
or settlement payments and without making out of period adjustments. Therefore, do no enter negative numbers
on the form.
E. Obligation to file revisions
Line (318) provides check boxes to show whether the Worksheet is the original filing or a revised filing for the
year. A contributor must file a revised worksheet if it discovers an error in the data that it reports. Contributors
generally close their books for financial purposes by the end of March. Accordingly, for such contributors, the
April 1 filing should be based on closed books. Contributors should not include (carry back or bring forward)
routine out-of-period adjustments to revenue data unless such adjustments would affect a reported amount by
more than ten percent. Contributors should not file a revised April 1 Form 499-A Telecommunications
Reporting Worksheet to reflect mergers, acquisitions, or sales of operating units. In the event that a contributor
that filed a Form 499-A no longer exists, the successor company to the contributor's assets or operations is
responsible for continuing to make payments, if any, for the funding period. However, filers should notify the
universal service administrator so that the second half revenue of the surviving entity can be calculated as the
total combined revenue for the year minus the first half revenue of each predecessor entity.
Contributors should file revised Form 499-A worksheets by December 31 of the same calendar year. Revisions
filed after that must be accompanied by an explanation of the cause for the change along with documentation
showing how the revised figures derive from corporate financial records.
F. Compliance
Contributors failing to file the Telecommunications Reporting Worksheet or to pay contributions in a timely
fashion may be subject to the enforcement provisions of the Communications Act and any other applicable law.
In addition, contributors may be billed by the administrators for reasonable costs, including interest and
administrative costs that are caused by inaccurate or untruthful filing of the Worksheet or overdue contributions.
III. Specific Instructions
A. Block 1: Contributor Identification Information
Block 1 of the Telecommunications Reporting Worksheet requires identification information.
Line (101) -- enter the "Filer 499 ID" number for the filing entity. This is a six digit number starting with an 8
that formerly was assigned as the Telecommunications Relay Service (TRS) Company Code. TRS Company
Codes for carriers that filed 1998 TRS Worksheets are published in the FCC report Carrier Locator: Interstate Service
Providers, which is available on the Commission's "FCC-State Link," web site at . New
filers can obtain Filer 499 IDs by contacting Telecommunications Reporting Worksheet Information at [To be
Announced]. This code should be entered at the top of each page on the paper version of the worksheet, the
cover letter, and on supporting documentation, if any.
Line (102) -- enter the legal name of the filer as it appears on articles of incorporation and other legal documents.
Each legal entity must file a separate worksheet.
Line (103) -- provide the Internal Revenue Service (IRS) employer identification number (EIN) for the filer. This
should be the same EIN that the company uses to file federal excise taxes or income taxes, if the company offers
services subject to that tax.
Line (104) -- provide the principal name under which the company conducts telecommunications activities. This
would typically be the name that appears on customer bills, or the name used when service representatives answer
customer inquiries.
Line (105) -- mark the box that best describes the principal telecommunications activity of the filer. Use the
following categories:
CAP/CLEC (Competitive Access Provider/Competitive Local Exchange Carrier)
-- competes with incumbent LECs to provide local exchange services
or telecommunications services that link customers with
interexchange facilities, local exchange networks, or other customers.
Cellular/PCS/SMR (Cellular, Personal Communications Service, and
(wireless telephony) Specialized Mobile Radio - telephone service provider)
-- primarily provides wireless telecommunications services (wireless
telephony). This category includes the provision of wireless
telephony by resale. An SMR provider would select this category if
it primarily provides wireless telephony rather than dispatch or other
mobile services.
Incumbent LEC -- provides local exchange service. An incumbent local exchange
carrier (LEC) generally is a carrier that was at one time franchised as
a monopoly service provider. See 47 U.S.C. 251(h).
IXC (Interexchange Carrier)
-- provides long distance telecommunications services substantially
through switches or circuits that it owns or leases.
Local reseller -- provides local exchange or fixed telecommunications services by
reselling services of other carriers.
OSP (Operator Service Provider)
-- serves customers needing the assistance of an operator to complete
calls, or needing alternate billing arrangements such as collect calling.
Paging and Messaging -- provides wireless paging or wireless messaging services. This
category includes the provision of paging and messaging services by
resale.
Payphone Service Provider -- provides customers access to telephone networks through
payphone equipment, special teleconference rooms, etc. Payphone
service providers also are referred to as payphone aggregators.
Pre-paid Card -- provides pre-paid calling card services by selling pre-paid calling
cards to the public or to retailers. Pre-paid card providers typically
resell the toll service of other carriers and determine the price of the
service by setting the price of the card and controlling the number of
minutes that the card can be used for.
Private Service Provider -- offers telecommunications to others for a fee on a non-common carrier
basis. This would include a company that offers excess capacity on a private
system that it uses primarily for internal purposes.
Satellite -- provides satellite space segment or earth stations that are used for
telecommunications service.
Shared Tenant Service Provider -- manages or owns a multi-tenant location that provides telecommunications
services or facilities to the tenants for a fee.
SMR (dispatch) (Specialized Mobile Radio service provider)
-- primarily provides dispatch services and mobile services other than
wireless telephony. While dispatch services may include
interconnection with the public switched network, this category does
not include carriers that primarily offer wireless telephony.
Toll Reseller -- provides long distance telecommunications services primarily by
reselling the long distance telecommunications services of other
carriers.
Wireless Data -- provides mobile or fixed wireless data services using wireless
technology. This category includes the provision of wireless data
services by resale.
The worksheet also provides boxes for "Other Local," "Other Mobile," and "Other Toll." If one of these
categories is checked, the filer should describe the nature of the service it provides.
Line (106) -- provide the name of the contributor's holding company or controlling entity, if any. The holding
company need not be a common carrier. All reporting affiliates or commonly controlled contributors should
have the same name appearing in Line (106). An affiliate is a "person that (directly or indirectly) owns or
controls, is owned or controlled by, or is under common ownership or control with, another person." See 47
U.S.C. 153(1).
Line (107) -- provide the name of the management company, if the contributor is managed by an entity other than
itself. If the reporting entity and one or more other contributors is commonly managed, then each should show
the same management company on Line (107). Contributors need not be affiliated to have a common
management company. The management company would typically be the point of contact for the administrators
of the support mechanisms.
Line (108) -- enter the complete mailing address of the corporate headquarters of the reporting entity.
Line (109) -- provide a business address of the reporting entity that could be used either for customer inquiries
or that parties could use to contact the carrier in order to resolve complaints. If this address is the same as the
mailing address of the corporate headquarters, then enter "same" on this line.
Line (110) -- enter a telephone number that can be used for customer inquiries.
Line (111) -- provide all names that the reporting entity used during the reporting period or currently uses for
providing telecommunications services. The worksheet provides space for additional names for carrier activities
(other than that contained on Line (104)). Use an additional sheet if this is not sufficient. Enter all names by
which the contributor would be known to customers, government bodies, creditors, the press, etc. This list must
include the carrier's billing agents if those parties, rather than the carrier, are identified on customer bills. This
list also should include names of predecessor companies that would have filed a universal service, TRS, NANP,
local number portability or Telecommunications Reporting Worksheet in the prior year. In such cases, include
the prior TRS ID as part of the name. This information will be used by the administrators in instances where
other information indicates that a non-filer might exist and also to ensure that entities are not billed improperly
for predecessor companies that no longer exist.
B. Block 2: Contact Information
Lines (112-115) -- enter the name of the person who filled out the Form 499. This should be a person who can
provide clarifications, additional information, and, if necessary, who could serve as the first point of contact in
the event that either the Commission or an administrator should choose to verify or audit information provided
in the Telecommunications Reporting Worksheet.
Line (116) -- provide the name and mailing address of a corporate office to which future Telecommunications
Reporting Worksheets should be sent. The next Telecommunications Reporting Worksheet will be mailed to
this address unless other arrangements are made. Failure to receive a Telecommunications Reporting Worksheet
from an administrator or the FCC does not relieve the contributor from its obligation to file in a timely fashion.
Line (117) -- provide a name and address for administrators to send billing information for contributions to the
mechanisms. Information on establishing electronic fund transfer and bills for universal service, TRS, NANPA
or local number portability administration contributions will be sent to this address unless other arrangements
are made.
Lines (118-127) -- The second part of Block 2 contains information on the contributor's agents for service of
process, including the agent located in the District of Columbia ("D.C. Agent"), as required of all carriers
pursuant to section 1.47(h) of the Commission's rules. 47 C.F.R. 1.47(h). All carriers must enter the name,
business address, telephone or voicemail number, facsimile number, and, if available, Internet e-mail address for
their designated D.C. Agent. Note that service of any notice, process, orders, decisions, and requirements of the
Commission may be made upon the reporting carrier by leaving a copy thereof with this designated agent during
normal business hours at the agent's office or other usual place of residence. In addition to providing the
required information on the carrier's D.C. Agent, the carrier may elect to provide an alternate agent for service
of process located outside the District of Columbia. Reporting entities other than carriers need only report one
agent for service of process, whether located inside the District of Columbia or otherwise.
Note: All carriers must notify the FCC within one week if the contact information changes for their D.C. Agent.
Any such carrier should report changes by completing page 1 of the April 1 Form 499A and filing it with the
Office of the Secretary, directed to the attention of:
Chief, Formal Complaints and
Investigations Branch
Common Carrier Bureau
Rm 5-C823
445 12th Street, S.W.
Washington, D.C. 20554
C. Block 3: Contributor Revenue Information
Lines (201-202) -- enter the Filer 499 ID at the top of Block 3 in Line (201) and copy the legal name of the
reporting entity from Line (102) into Line (202).
Lines (203) through (232) contain detailed revenue data.
1. Separating Revenue from Resellers from Revenue from All Other Sources
(carrier's carrier vs end user)
In the Telecommunications Reporting Worksheet, filers must report revenue from two broad types of categories:
(1) Revenue from other contributors to the federal universal service support mechanisms; and, (2) Revenue from
all other sources. For the purposes of this worksheet revenue from other contributors to the federal universal
service support mechanisms is primarily revenue from services provided by underlying carriers to other carriers
for resale, referred to here as "carrier's carrier revenue" or "revenue from resellers." Revenue from all other
sources consists primarily of revenue provided to end users, referred to here as "end user revenue."
For the purpose of completing Block 3, a reseller is a telecommunications carrier or telecommunications service
provider that: 1) incorporates purchased telecommunications services into its own offerings; and, 2) can
reasonably be expected to contribute to federal universal service support mechanisms based on revenues from
those offerings.
Note: For the purposes of filing out this worksheet -- and for calculating contributions to the universal service
support mechanisms -- certain telecommunications carriers and service providers may be exempt from
contribution to the universal service support mechanisms. These exempt entities, including "international only"
and "intrastate only" carriers and carriers that meet the de minimis universal service threshold, should not be
treated as resellers for the purpose of reporting revenues in Block 3. That is, filers that are underlying carriers
should report revenues derived from the provision of telecommunications to exempt carriers and providers
(including services provided to entities that are de minimis for universal service purposes) in Lines (215-231) of
the Telecommunications Reporting Worksheet, as appropriate. Underlying carriers must contribute to the
universal service support mechanisms on the basis of this revenue. In Block 4, however, filers may elect to
report the amount of revenue from these exempt entities, including de minimis carriers, that was reported as end-
user revenue, so that these revenues may be excluded for purposes of TRS, LNPA, and NANPA.
Each contributor should have documented procedures to ensure that it reports as revenues from resellers only
revenues from entities that reasonably would be expected to contribute to support universal service. The
procedures should include but not be limited to maintaining the following information on resellers: legal name;
address; name of a contact person; and phone number of the contact person. If the underlying contributor does
not have independent reason to know that the entity will, in fact, resell service and contribute to the federal
universal service support mechanisms, then the underlying carrier should either obtain a signed statement to that
effect or report those revenues as end user revenues.
2. Column (a) - total revenue
The reporting entity must report gross revenues from all sources, including nonregulated and non-
telecommunications services on Lines (203) through (230) and these must add to total gross revenue as reported
on Line (231). Gross revenues should include revenues derived from the provision of interstate, international,
and intrastate telecommunications and non-telecommunications services. Gross revenues consist of total
revenues billed to customers during the filing period with no allowances for uncollectibles, settlements, or out-of-
period adjustments. Gross billed revenues may be distinct from booked revenues. NECA pool companies
should report the actual gross billed revenues (CABS Revenues) reported to the NECA pool and not settlement
revenues received from the pool.
Where two contributors have merged prior to filing, the successor company should report total revenues for the
reporting period for all predecessor operations. The two contributors, however, should continue to report
separately if each maintains separate corporate identities and continues to operate.
Gross revenues also should include any surcharges on communications services that are billed to the customer
and either retained by the contributor or remitted to a non-government third party under contract. Gross
revenues should exclude taxes and any surcharges that are not recorded on the company books as revenues but
which instead are remitted to government bodies. Note that any charge included on the customer bill and
represented to recover or collect contributions to federal or state universal service support mechanisms must be
shown separately on Line (215). Other surcharges treated as revenue should be included in the revenue
categories on which the surcharges were levied.
For international services, gross revenues consist of gross revenues billed by U.S. contributors with no allowances
for settlement payments. International settlement receipts for foreign billed service should not be included.
3. Columns (b) and (c) percent interstate & international
Columns (b) and (c) are provided to identify the part of gross revenues that arise from interstate and international
service for each entry in Lines (203) through (229). Intrastate telecommunications means communications or
transmission between points in the same State, Territory, or possession of the United States, or the District of
Columbia. Interstate and international telecommunications means communications or transmission between
points between a point in one State, Territory, possession of the United States or the District of Columbia and
a point outside that State, Territory, possession of the United States or the District of Columbia.
For example, if a prepaid calling card provider collects a fixed amount of revenue per minute of traffic, and 65
percent of minutes are interstate, then interstate revenues would include 65 percent of the per-minute revenues.
Similarly, if a LEC bills local measured service charges for calls that originate in one state and terminate in
another, these billings should be classified as interstate even though the charges are covered by a state tariff and
the revenues are included in a local service account. Note that, under the Commission's rules, if over ten percent
of the traffic carried over a private or WATS line is interstate, then the revenues and costs generated by the entire
line are classified as interstate. In general, flat-rated unbundled network access elements should be classified
according to the regulatory agency that has primary jurisdiction over the contracts.
Note: Where possible, filers should report their amount and percentage of total revenues that are interstate and
international by using information from their books of account and other internal data reporting systems. So,
where a filer can determine the precise amount of revenue that it has billed for interstate and international
service, it should enter that amount in column (c) and then calculate the percentage interstate and international
as the amount in column (c) divided by the amount in column (a).
In many cases, interstate and international revenues cannot be determined directly from corporate books of
account or subsidiary records. Filers that cannot derive interstate and international revenues or that cannot derive
the line-by-line revenue breakdowns may provide on the worksheet good faith estimates of these figures. In such
cases, the filer should enter the good faith estimate of the percentage of interstate and international revenues in
column (b). A reporting entity may not submit a good faith estimate lower than one percent unless the correct
figure should be $0. Information supporting good faith estimates must be made available to either the FCC or
to the Universal Service Administrator upon request. Using the good faith estimate, calculate the amount of
interstate and international revenue as the amount in column (a) times the percentage in column (b). For
convenience, calculated interstate and international revenue amounts that are greater than one thousand dollars
may be rounded to the nearest thousand dollar. Please enter zero dollars in column (c) if, and only if, there were
no interstate revenues for the line for the reporting period.
Note that under interim guidelines, the FCC provides the following safe harbor percentages of interstate and
international revenues associated with Line (209), Line (221) and Line (222):
15% of cellular and broadband PCS telecommunications revenues
12% of paging revenues
1% of analog SMR dispatch revenues
Wireless telecommunications providers that chose to avail themselves of these procedures may assume that the
FCC will not find it necessary to review or question the data underlying their reported percentages.
4. Explanation of revenue categories
The revenue detail provided on Lines (203) through (230) should total to total gross revenue reported on Line
(231). This section explains the detailed revenue categories.
Filers are instructed to report revenues from other universal service contributors in Lines (203) through (214).
Filers are instructed to report all other revenues in Lines (214) through (230). In many cases, the line-item
categories are duplicated in the two sections. Carriers that are required to use the Uniform System of Accounts
(USOA) prescribed in Part 32 of the Commission's rules should base their responses on their USOA account
data and supplemental records, dividing revenues into those received from universal service contributors and
those received from end users and other non-contributors. All filers should report revenues based on the
following descriptions.
Fixed local service revenue categories
Fixed local services connect a specific point to one or more other points. These services can be provided using
either wireline or wireless technologies and can be used for either local exchange service, private
communications, or access to toll services.
Line (203) and Line (216) -- Monthly service, local calling, connection charges, vertical features, and other local
exchange services should include the basic local service revenues except for local private line revenues, access
revenues, and revenues from providing mobile or cellular services. For carriers required to use the USOA, these
lines should include Account 5001 -- Basic area revenue; Account 5002 -- Optional extended area revenue;
Account 5050 -- Customer premises revenue; Account 5060 -- Other local exchange revenue; and Account 5069
-- Other local exchange revenue settlements. Line (203) also should include amounts in Account 5004 -- Other
mobile services revenue -- that were derived from connecting with mobile service carriers. Revenues for services
provided to carriers should be divided between Line (203a) -- provided as unbundled network elements -- and
Line (203b) -- provided under tariffs or arrangements other than unbundled network elements (for example,
resale). Line (203a) should include Presubscribed Interexchange Carrier Charge (PICC) charges levied on
carriers.
Line (217) -- Tariffed subscriber line and PICC charges levied on end users should contain charges to end-users
(other than for special access services) specified in access tariffs. Line (217) should include revenues in Account
5081 -- End-user revenue -- as well as the appropriate portion of revenues in Account 5084 -- State access
revenue. Contributors that do not have subscriber line charge tariffs on file with the Commission or with a state
utility commission should report $0 on Line (217).
Line (204) -- Per-minute charges for originating or terminating calls should include Account 5082 -- Switched
access revenue -- and any revenues in Account 5084 -- State access revenue -- that were based on per-minute
charges including bulk billed per minute charges. This line also would include Account 5003 -- Cellular mobile
revenue (revenues to the local exchange carrier for messages between a cellular customer and another station
within the mobile service area). The line should include gross charges to other carriers for the origination or
termination of non-toll traffic. Do not deduct or net payments to carriers for origination or termination of traffic
on their networks. Revenues for originating and terminating minutes should be divided between Line (204a) --
provided as unbundled network elements or other contract arrangements and Line (204b) -- provided under state
or federal access tariffs.
Line (205) and Line (218) -- Local private line and special access service should include revenues from providing
local services that involve dedicated circuits, private switching arrangements, and/or predefined transmission
paths. These lines should include amounts recorded in Account 5040 -- Local private line revenue. These lines
also should include Account 5083 -- Special access revenue -- and any intrastate special access revenues in
Account 5084 -- State access revenue.
Line (206) and Line (219) -- Line (206) should include revenues received from carriers as compensation for
originating toll calls. Line (219) should include revenues received from customers paid directly to the payphone
service provider. Line (219 primarily will consist of revenues from coin sent paid traffic and will include revenue
in Account 5010 -- Payphone revenues. Do not deduct commission payments to premises owners.
Line (207) and Line (220) -- Other local telecommunications service revenues should include some revenues
contained in Account 5200 -- Miscellaneous revenue -- as well as other local telecommunications service
revenues that reasonably would not be included with one of the other local service revenue categories. Line (207)
should include charges for physical collocation of equipment pursuant to 47 U.S.C. 251(c)(6). Lines (207) and
(220) should exclude: enhanced services; billing and collection; customer premises equipment sale, lease or
insurance; published directory revenues; internet service provider charges and any non-telecommunications
revenues.
Line (208) -- Universal service support revenues should include all amounts that filers receive as universal service
support from either states or the federal government. Line (208) should include as revenues Lifeline Assistance
reimbursement for the waived portion of subscriber line or presubscribed interexchange carrier charges or credits
for subsidized services provided to schools, libraries, and rural health care providers. Line (208) should include
amounts received as cash as well as amounts received as credit against contribution obligations. Line (208)
should not include any amounts charged to customers to recover universal service or similar contributions.
Mobile service
Mobile services are wireless communications between wireless equipment, such as cellular phones, and other
points.
Line (209), Line (221), and Line (222) -- Data reported on these lines should contain mobile service revenues
other than toll charges to mobile service customers and charges associated with customer premises equipment.
A single category -- Line (209) -- is provided for all mobile service provided to resellers. For services provided
to end users, Line (221) should contain monthly charges, activation fees, and service order processing charges,
etc. Line (222) should contain message charges, including any roaming charges assessed for calls placed out of
customers' home areas. Lines (221) and (222) should include amounts in Account 5004 -- Other mobile service
revenue -- that were derived from providing service directly to the public. End-user pre-paid wireless service
revenues attributable to activation and daily or monthly access charges should be reported on Line (221). End-
user pre-paid wireless service revenues attributable to air time should be reported on Line (222). Toll charges
to mobile service customers should be included in the Lines (225) or (226), as appropriate.
Toll carrier service revenue categories
Toll services are telecommunications services, wireline or wireless, that enable customers to communicate outside
of local exchange calling areas. Toll service revenues include intrastate, interstate, and international long distance
services.
Line (223) -- This line should include revenues from pre-paid calling cards provided either to customers or to
retail establishments. Gross billed revenues should represent the amounts actually paid by customers and not
the amounts paid by distributors or retailers, and should not be reduced or adjusted for discounts provided to
distributors or retail establishments. All pre-paid card revenues are classified as end-user revenues.
Line (224) - International calls that both originate and terminate in foreign points are excluded from the universal
service contribution base regardless of whether the service is provided to resellers or to end-users. These
revenues should be segregated from other toll revenues by showing them on Line (224). Contributors should
not report international settlement revenues from traditional settlement transiting traffic on the Worksheet.
Line (210) and Line (225) -- Operator and toll calls with alternative billing arrangements should include all calling
card or credit card calls, person-to-person calls, and calls with alternative billing arrangements such as third
number billing, collect calls, and country-direct type calls that either originate or terminate in a U.S. point. These
lines should include all charges from toll or long distance directory assistance. Lines (210) and (225) should
include revenues from all calls placed from all coin and coinless, public and semi-public, accommodation and
prison telephones, except that calls that are paid for via pre-paid calling cards should be included in Line (223)
and calls paid for by coins deposited in the phone should be included in Line (219).
Line (211) and Line (226) -- Ordinary long distance and other switched toll services should include amounts from
Account 5100 -- Long distance message revenue -- except for amounts reported on Lines (210), (219), (223),
(224) or (225). Line (211) and Line (226) should include ordinary message telephone service (MTS), WATS, toll-
free, 900, "WATS-like," and similar switched services. This category includes most toll calls placed for a fee and
should include flat monthly charges, such as account maintenance charges or monthly minimums, billed to
customers.
Line (212) and Line (227) -- Long distance private line service should include revenues from dedicated circuits,
private switching arrangements, and/or predefined transmission paths, extending beyond the basic service area.
This category should include revenues from the resale of special access services. Line (212) and Line (227) should
include Account 5120 -- Long distance private network revenue.
Line (213) and Line (228) -- Satellite service should contain revenues from providing space segment service and
earth station link-up capacity used for providing telecommunications or telecommunications services via satellite.
Revenues derived from the lease of bare transponder capacity should not be included in Lines (213) and (228).
Line (214) and Line (229) -- All other long distance should include all other revenues from providing long
distance communications services. These lines should include Account 5160 -- Other long distance revenue.
Other revenue categories
Line (215) -- Itemized charges levied by the reporting entity in order to recover contributions to state and federal
universal service support mechanisms should be classified as end-user billed revenues and should be reported
on Line (215). Any charge that is identified on a bill as recovering contributions to the universal service support
mechanisms must be shown on Line (215).
Line (230) -- Other revenue that should not be reported in the contribution bases. Filers may have revenues on
their books that are not derived from telecommunications or that are derived from telecommunications-related
functions that should not be included in the universal service contribution base. For example, information
services offering a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications are not included in the universal service contribution base.
Information services do not include any use of any such capability for the management, control, or operation of
a telecommunications system or the management of a telecommunications service. Information services also
are called enhanced services because they are offered over common carrier transmission facilities used in
interstate communications and employ computer processing applications that act on the format, content, code,
protocol, or similar aspects of the subscriber's transmitted information; provide the subscriber additional,
different, or restructured information; or involve subscriber interaction with stored information. These services
are exempt from contribution requirements and should be reported in Line (230). Line (230) should include
Account 5230 -- Directory revenues -- and Account 5270 -- Carrier billing and collection revenue. Line (230)
should include revenues from the sale, lease, maintenance, or insurance of customer premises equipment (CPE),
inside wiring maintenance insurance, and all non-telecommunications service revenues on the reporting entity's
books.
Line (231) -- Gross billed revenues from all sources should equal the sum of revenues by type of service reported
on Lines (203) through (230).
Line (232) -- Universal service contribution base. Enter the subtotal of Lines (215) through (223) and Lines (225)
through (229). The totals on this line represent end-user revenues for the purpose of determining contributions
to universal service. Note that these lines contain end-user revenues from carriers and telecommunications
service providers that are exempt (e.g., carriers that meet the de minimis exception, or that provide "international
only" service) for the purpose of contributing to universal service support mechanisms. Since these entities
generally do contribute to the TRS, local number portability, and NANPA mechanisms, revenue from these
entities need not be included in contribution bases for those mechanisms. Thus, underlying carriers may, if they
elect to, identify these amounts on Line (312).
G. Block 4: Certification.
Lines (301-302) -- enter the Filer 499 ID at the top of Block 3 in Line (201) and copy the legal name of the
reporting entity from Line (102) into Line (202).
Line (303) -- In this line, filers may certify that they are exempt from one or more contribution requirement.
As explained above, the Form 499 Telecommunications Reporting Worksheet enables telecommunications
carriers and service providers to satisfy a number of requirements in one consolidated form. Not all entities that
file the Telecommunications Reporting Worksheet must contribute to all of the support and cost recovery
mechanisms (universal service, local number portability, TRS, and NANPA). For example, certain
telecommunications service providers that are not telecommunications carriers must contribute to the universal
service support mechanisms, but not to the TRS, local number portability, and NANPA mechanisms). Section
IV-A provides summary information on which filers are must contribute and which filers are exempt from
particular contribution requirements.
Note: It is not necessary for a filer to certify that it is de minimis for universal service purposes because the
universal service administrator can determine whether a filer meets the contribution threshold from other
information provided on the form. If, however, a reseller qualifies for the de minimis exemption, it must notify
its underlying carriers that it is not contributing directly to universal service, so that it may be treated as an end
user when the underlying carriers file Form 499.
Lines (304-311) -- In these lines, filers should identify the percentages of their revenues by LNPA region. Filers
that have certified that they are exempt from contributing to the shared costs of local number portability need
not provide these breakdowns. Carriers should calculate or estimate the percentage of revenue that they billed
in each region based on the amount of service actually provided in the parts of the United States listed for each
region. The percentages in column (a) should add to 100% unless the filer did not provide any services to other
universal service contributors. The percentages in column (b) should add to 100% unless the filer did not
provide any telecommunications services to end users or non-contributing carriers. Carriers do not need to
complete column (a) if they have some end-user revenues in each of the regions in which they have carrier
operations.
Line (312) - see instructions for Line (232) in Section III-C-5.
Line (313) -- Filers may use the box in Line (313) to request nondisclosure of the revenue information contained
on the Telecommunications Reporting Worksheet. By checking this box, the officer of the company signing the
Worksheet certifies that the information contained on the Worksheet is privileged or confidential commercial
or financial information and that disclosure of such information would likely cause substantial harm to the
competitive position of the company filing the Worksheet. This box may be checked in lieu of submitting a
separate request for confidentiality pursuant to section 0.459 of the Commission's rules. All decisions regarding
disclosure of company-specific information will be made by the Commission. The Commission regularly makes
publicly available the names (and Block 1 and 2-B contact information) of the entities that file the
Telecommunications Reporting Worksheet, including entities that checked the box in Line (313).
Lines (314-318) -- An officer of the reporting entity must examine the data provided in the Telecommunications
Reporting Worksheet and certify that the information provided therein is accurate. An officer is a person who
occupies a position specified in the corporate by-laws (or partnership agreement), and would typically be
president, vice president for operations, vice president for finance, comptroller, treasurer, or a comparable
position. If the reporting entity is a sole proprietorship, the owner must sign the certification.
Line (318) - Indicate whether this filing is an original filing or a revised filing. See Section II-F.
IV. Calculation of Contributions
A. Contribution Requirements
Most filers must contribute to the universal service, TRS, NANPA, and LNPA funding mechanisms. This
section provides a short summary to assist carriers and service providers in determining whether they must
contribute to one or more of the mechanisms. Filers should consult the Commission's rules and orders to
determine whether they must contribute to one or more of the mechanisms.
Federal universal service support mechanisms. Entities that provide interstate telecommunications to the
public for a fee will be considered telecommunications carriers providing interstate telecommunications services
and must contribute to the universal service support mechanisms. See 47 C.F.R. 54.703.
Telecommunications Relay Services. Every common carrier providing interstate telecommunications services
shall contribute to the TRS Fund. See 47 C.F.R. 64.604.
North American Numbering Plan Administration. All telecommunications carriers in the United States shall
contribute to meet the costs of establishing numbering administration. See 47 C.F.R. 52.17.
Shared Costs of Local Number Portability. The shared costs of long-term number portability attributable
to a regional database shall be recovered from all telecommunications carriers providing telecommunications
service in that region. See 47 C.F.R. 52.32.
Figure 3 summarizes which telecommunications carriers and service providers must file for particular purposes.
Figure 3: Which telecommunications service providers must contribute for which purposes.
Filing required
Universal
Service
TRS
NANPA
LNPA
April 1 (499-A) and
September 1 (499-S)
April 1 (499-A)
De minimis payphone aggregators that do not
also have telecommunications carrier revenue
X
Other payphone aggregators that do not also
have telecommunications carrier revenue
X
X
Private telecommunications service providers
(i.e., with no telecommunications carrier
revenue) that are de minimis
Private telecommunications services providers
(i.e., with no telecommunications carrier
revenue) that offer interstate
telecommunications for a fee
X
Telecommunications carriers that provide
services either: 1) only to other universal
service contributors; or 2) only international-
to-international services; or 3) only
international services.
X
X
X
Telecommunications carriers that provide only
intrastate services
X
X
Satellite carriers providing interstate
telecommunications services
X
X
X
X
De minimis telecommunications carriers
providing interstate telecommunications
X
X
X
All other telecommunications carriers
providing interstate telecommunications
X
X
X
X
B. Contribution Bases
Filers do not calculate, in this worksheet, the amounts that they must contribute. The administrators will use the
revenue information on the worksheet to calculate a funding base and individual contributions for each support
mechanism. Individual contributions are determined by use of "factors" -- factors reflect the total funding
requirement of a particular mechanism divided by the total contribution base for that mechanism. Information
on the contribution bases and individual filer contributions are shown in Figure 4.
Figure 4: Contribution bases
Support Mechanism
Funding Basis
Universal service low cost and high income
Line (232) - (c)
Universal service schools and libraries and rural
health care
Line (232) - (a)
TRS (Filers with end user revenue must pay a
minimum of $25)
Line (232) - (c)
plus Line (224) - (c)
less Line (312) - (c)
NANPA (Filers with end user revenue must
pay a minimum of $25. Filers with no end
user revenue must pay $25)
Line (232) - (a)
plus Line (224) - (a)
less Line (312) - (a)
LNPA - by region
(Filers with no end user revenue must pay
$100)
Line (232) - (a)
plus Line (224) - (a)
less Line (312) - (a)
times percentage of end user revenue shown in
Lines (304) through (310)
V. Reminders
þ Each legal entity must file separately. Each affiliate or subsidiary should show the same holding
company name on Line (106).
þ Provide data for all lines that apply. Show a zero for services for which the contributor had no
revenues for the filing period.
þ Some contributors must file twice a year. Filers that are required to contribute to universal
service support mechanisms are also required to file a Form 499-S on September 1.
þ Wherever possible, revenue information should be taken from the contributors' financial
records.
þ The Worksheet must be signed by an officer of the reporting entity. An officer is a person who
occupies a position specified in the corporate by laws (or partnership agreement), and would
typically be president, vice president for operations, comptroller, treasurer, or a comparable
position.
þ Do not mail the worksheet to the FCC. See Section II-B for filing instructions.
If you have questions about the worksheet or the instructions, you may contact:
Form 499 Telecommunications Reporting
Worksheet Information [To be Announced]
Common Carrier Bureau
Industry Analysis Division (202) 418-0940
TTY (Network Services Division) (202) 418-0484
If you have questions regarding contribution amounts, billing procedures or the mechanisms, you may contact:
Universal Service Administration (973) 560-4400
TRS Administration (973) 418-0948
NANPA Billing and Collection Agent (973) 884-8542
Local Number Portability Administrators (877) 245-5277
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